CBZ Insurance (Private) Limited

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CBZ Insurance (Private) Limited (2021-11)
  • CBZ Insurance (Private) Limited
  • Year : Nov 2021
3 Tokens
USD 300.00

CBZ Insurance’s earnings profile improved in FY20, supported by sound underwriting profitability coupled with reduced exposure to net monetary losses. The insurer registered robust underwriting profitability over the past two years, driven by a favourable claims experience. As such, the net underwriting margin registered at 38% in FY20 (FY19: 43%; FY18: 4%) respectively. Furthermore, exposure to net monetary losses reduced on the back of lower premium receivables due to the conversion to short term policies along with the stability introduced by the reintroduction of foreign currency denominated policies.

Additional Information

The Stable Outlook is premised on expectations that the insurer will maintain its market position whilst earnings improvement is sustained over the rating horizon. A rating upgrade is likely to follow continued improvement in competitiveness and earnings, positively impacting risk adjusted capitalisation and liquidity. Negative rating action could result from a weakening in earnings beyond expectation, resulting in a deterioration in capitalisation and liquidity metrics.

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